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Fixed or Static buget is for a particular activity level. Flexible budget is for a range of activity level. Differentiate between Fixed and Flexible budget ? Needs a complete answer.
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The main difference a flexible budget and a static budget is that a flexible budget does not contain fixed costs true or false?
true
What is the difference between a fixed budget and a flexible budget?
is a plan for a single level of production, whereas a flexible budget can be converted to any level of production.
What is the difference between a rolling budget and a flexible budget?
Here are the differences between the two: Flexible Budget-A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The flexible budget is more sophisticated and useful than a static budget, which remains at one amount regardless of the volume of activity. Rolling Budget-Method in which a budget established at the beginning of an accounting period is continually amended to reflect variances that arise due to changing circumstances. Hope this helps!
Explain how a activity based flexible budget differs from a conventional flexible budget?
there are some difference among activity based flexible budget and conventional fllexible budget, the main differ is number of cost driver that use to allocat OHC, so my dissertation about this subject
Explain how a fixed cash budget differs from a variable or flexible cash budget?
fixed budget is prepared at the start of the period and flexible budget is prepared at the end of period it is adjusted from current activity level of company...
Is Static planning budget and flexible budget or Flexible budget and actual results comparisons that best isolates the impact that changes in prices of inputs and outputs have on performance?
flexible budget and actual results
The main difference a flexible budget and a static budget is that a flexible budget does not contain fixed costs true or false?
true
What is the difference between a fixed budget and a flexible budget?
is a plan for a single level of production, whereas a flexible budget can be converted to any level of production.
What is the difference between a rolling budget and a flexible budget?
Here are the differences between the two: Flexible Budget-A flexible budget is a budget that adjusts or flexes for changes in the volume of activity. The flexible budget is more sophisticated and useful than a static budget, which remains at one amount regardless of the volume of activity. Rolling Budget-Method in which a budget established at the beginning of an accounting period is continually amended to reflect variances that arise due to changing circumstances. Hope this helps!
Definition of flexible cash budget?
By definition, a flexible cash budget is a cash budget with wiggle room, in lay terms. It can be adjusted or flexed with varying circumstances as they arise.
Explain how a activity based flexible budget differs from a conventional flexible budget?
there are some difference among activity based flexible budget and conventional fllexible budget, the main differ is number of cost driver that use to allocat OHC, so my dissertation about this subject
Explain how a fixed cash budget differs from a variable or flexible cash budget?
fixed budget is prepared at the start of the period and flexible budget is prepared at the end of period it is adjusted from current activity level of company...
What variance is the difference between the actual sales and the flexible budget sales?
Actual sales (quantity ) = flexible budget sales (quantity ) , because the flexible budget is prepared based on the actual activity level (units sold ) to avoid misleading of compering the static budget sales and actual sales
Flexible budget against static budget?
abudget based on a single level of output
How is the flexible budget information used to evaluate performance?
The flexible budget report can be used to evaluate performance in two areas: production control and cost control.
How is the flexible budget report information used to evaluate performance?
The flexible budget report can be used to evaluate performance in two areas: production control and cost control.
What information from a flexible budget is used to evaluate performance?
Using a Budget to Evaluate PerformanceSo, what happens when the period's over? At period end, it's time to determine whether we fell in line with our planned expenditures. That's when a flexible budget is used. A flexible budget is a budget with figures that are based on actual output. It's then compared to a company's static budget to get variances (differences) between what level of spending was expected and what actually occurred.With a flexible budget, budgeted dollar values (i.e. costs or selling prices) are multiplied by actual units to determine what particular number will be given to a level of output or sales. This yields the total variable costs involved in production. The second component of the flexible budget is the fixed cost. Typically, the fixed cost does not differ between the static and flexible budgets.There are tons of variances that can arise in the static budgeting system. The two most basic variances are the flexible budget variance and sales-volume variance. The flexible budget variance compares the flexible budget to actual results to determine the effects that prices or costs have had on operations. The sales volume variance compares the flexible budget to the static budget to determine the effect that a company's level of activity had on its operations. From these two budgets, a company can develop individual flexible and static budgets for any element of its operations. For example, the static budget variance is the difference between the static budget and the company's actual results. The variances are always classified as either favorable or unfavorable.If sales volume variance is unfavorable (flexible budget is less than static budget), the company's sales (or production with a production volume variance) will turn out to be less than anticipated. If, however, the flexible budget variance was unfavorable (the variance effects eventual cash flows negatively) this would be a result of price or cost. By knowing where the company is falling short or exceeding the mark, managers can do a better job of evaluating the company's performance and use the information to make changes to fu
